Indian import scrap prices slipped on combined impact from global cues, local buyers unnerved by finished long steel products on a downtrend and tight liquidity faced by secondary mills, SteelOrbis learned from trade and industry circles on Wednesday, April 23.
Sources said that even though imposition of a 12 percent safeguard duty on imported flat steel improved outlook and optimism that finished steel prices would improve, induction furnace operators were still preferring local raw material sourcing and were submitting low bids for scrap even after recent declines in import offers.
Ex-UK/Europe offer prices for shredded scrap were reported at $375-378/mt CFR Nhava Sheva port in the west compared to $380-385/mt CFR a week ago, but bids were even lower at $370/mt CFR, resulting in almost silent trade activity.
The SteelOrbis reference shredded price was settled at $370-375/mt CFR, losing $7.5/mt over the week.
Offers for HMS I/II (80:20) scrap are at $350-360/mt CFR, down from $360-370/mt CFR a week ago but no firm bids were heard in the market.
“There is decent demand for scrap as induction furnace operators were expecting strong rebound in finished steel prices after imposition of safeguard duty. But the demand is strong in favour of local sourcing. Local scrap prices are becoming very competitive along with discounts on offer,” a Mumbai based ferrous and non-ferrous trader said.
“Trade channels are also not committing import booking in face of tight liquidity. With outlook in global markets bearish, local secondary mills will await further declines in import offers before looking at sourcing options overseas,” he said.
According to sources, secondary mills turned more active in the local market with scrap prices declining by INR 300/mt ($4/mt) to INR 34,600/mt ($406/mt), ex-Mandi Govindgarh in the north and sellers continuing to add 2-3 percent discount on invoices, while sponge iron price was down INR 100/mt ($1.50/mt) at INR 32,000/mt ($375/) ex-Mandi Govidngarh.
$1= INR 85.30